transition payment

Transition payment in a partial dismissal

Over ons | Arbeidsjurist Eindhoven
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Partial ending of the employment contract may entitle you to (partial) transitional allowance. Read more about the conditions in this blog.

Partial dissolution of the employment contract kan recht geven op transition payment. In 2018 the Supreme Court ruled that where there is no complete dissolution of the employment contract, the employee can claim a (partial) transition payment. This requires a forced reduction in working hours of at least 20%.

Height of transitional allowance for partial dismissal

The amount of the transitional allowance is determined on the basis of the last earned salary. If the employee's working time is substantially and structurally reduced by at least 20%, the employee may be entitled to a transitional allowance for that part. The partial transitional allowance must be calculated in proportion to the reduction in working time, taking as a basis the salary the employee was previously entitled to. On this page about transitional allowance you can calculate the partial transitional allowance.

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New employment contract or partial termination of existing contract

According to the Supreme Court, it makes no difference whether an existing contract is dissolved and a new one is offered, or whether there is a partial dissolution. In both situations the right to a partial transition payment arises if the number of working hours is substantially and permanently reduced. Even where the parties mutually agree to a permanent reduction (for example by means of a settlement agreement) the right to a partial transition payment exists.

Advice partial transitional allowance

The advice is to contact an employment law specialist in case of partial dissolution. There are specialists working within Labour Lawyer who can advise you on your rights to partial transitional allowance.

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